As marketers, we work tirelessly to move the needle on what often seems like a laundry list of metrics. We look at website visits, conversion rates, generated leads per channel, engagement on social media platforms, blog post shares, email click-through rates… and the list goes on and on. When the time comes to present the impact of your efforts to your boss, you can’t present him or her with everything you measure.
"You are not focused enough on results!" (Your Boss)
While many bosses theoretically understand that a solid marketing team can directly impact your company’s bottom line, 73% of executives don’t believe that marketers are focused enough on results to truly drive incremental customer demand.
Wow your boss with these metrics!
When it comes to metrics that matter to your execs, expect to report on data that deals with the total cost of marketing, salaries, overhead, revenue, and customer acquisitions. This post will walk you through the six critical metrics your boss actually wants to know.
So what are these six metrics?!
Costumer Acquisition Cost (CAC): The Customer Acquisition Cost (CAC) is a metric used to determine the total average cost your company spends to acquire a new customer.
Marketing % of Customer Acquisitions Cost: The Marketing % of Customer Acquisition Cost is the marketing portion of your total CAC, calculated as a percentage of the overall CAC.
Ratio of Customer Lifetime Value to CAC (LTV:CAC): The Ratio of Customer Lifetime Value to CAC is a way for companies to estimate the total value that your company derives from each customer compared with what you spend to acquire that new customer.
Time to Payback CAC: The Time to Payback CAC shows you the number of months it takes for your company to earn back the CAC it spent acquiring new customers.
Marketing Originated Customer %: The Marketing Originated Customer % is a ratio that shows what new business is driven by marketing, by determining which portion of your total customer acquisitions directly originated from marketing efforts.
Marketing Influenced Customer %: The Marketing Influenced Customer % takes into account all of the new customers that marketing interacted with while they were leads, anytime during the sales process.
I bet you are even more confused now...
Do not worry. Even though you never heard of these metrics before, you can learn all about them and how to calculate them in our latest Ebook!
It is completely FREE and available to download here:
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